Money is money, genius. If there were too much out there, we’d have inflation...do you understand how that works? So because so much uninflated money is in the hands of people and conpanies, corporate and individual wealth and purchasing power are greater than ever. Did you not know that? Look it up.
Ponderable
- Thread starter Bruddah IZ
- Start date
Hüsker Dü
DA
If you hadn't noticed he clings to the specific terminology and outline he has been fed . . . stray to far from the strict narrative and he risks exposure.
He reads weird things and he doesn’t have any common sense about money or how it works. “Psycho Loop Boy.”
Bruddah IZ
DA
As an economic term, “inflation” is shorthand for “inflation of the money supply.”
The general public, however, usually takes it to mean “rising prices” which is not surprising since one of the common effects of an increase in the money supply is higher prices. However, supporters of government policy often say, “If quantitative easing (QE) and its terrible twin, fractional reserve banking, are so awful, why have we got no inflation?”
To address this conundrum, there are six related factors that are noteworthy:
https://mises.org/blog/six-things-consider-about-inflation
Bruddah IZ
DA
Number One: we need to be clear about the terms we are using. Instead of talking about “inflation” in the loose sense, as above, it is more accurate to speak of currency debasement, which is the real impact of fiat money creation by any means. We experience currency debasement as declining purchasing power. Two sides of the same coin: one reflects the other.
Number Two: the above question overlooks the fact that the measures used in this process are inherently unreliable. The decline in purchasing power is most evident when objectively measured by reference to an essential commodity such as oil — rather than against the Consumer Price Index (CPI). The CPI purports to reflect the prices of ingredients selected by government statisticians in what they consider to be a typical, but notional, basket of “consumer goods and services.” This basket, whose contents are varied periodically, results in an index that cannot be trusted as an objective barometer. It supports the wizardry of non-independent Treasury statisticians, and relates to goods that scarcely feature in your shopping basket or mine.
Blowing Bubbles
Number Three: newly created fiat money must go somewhere — and so it goes into the grasp of its first receivers, the banks, the financial institutions, government institutions, and urban moneyed classes who least need it — widening the gap between rich and poor — and thereby building asset bubbles in property, luxury cars, yachts and the myriad baubles that only the very rich can afford to acquire. So never say that “there is no price inflation” — it’s just that those asset prices don’t figure in the official CPI stats.
Number Four: The European Central Bank (ECB) is no slouch when it comes to money creation out of thin air, and banks within the euro zone have therefore come to rely on it for survival. The solvency of Southern EU countries is dependent on the promise of limitless — thanks to Mario “Whatever it takes” Draghi — fiat money bailouts from the ECB. But, until the next bailout arrives, governments of Europe will do their coercive best to prop up their insolvent banks by any means, fair or foul. In Italy, for example, the government has now “invited” the country’s pension funds to invest 500 million euros in a bank fund called “Atlante,” which has been formally set up as a buyer of last resort to help Italian lenders (whose bad debts equate to a fifth of GDP) reduce their toxic burden. Having run out of other people’s money the Italian government is now trying to raid the nation’s pension funds.
Number Five: In the same vein, you have no doubt heard reference to “helicopter money.” This is a variant of QE favored by certain politicians who talk blithely about the need for “QE for the people.” The idea is to by-pass the treasury mandarins by dropping newly printed money directly to the people via government spending, so that they (rather than the already-rich classes) can benefit from the bonanza and aid the economy by spending their new-found wealth. Again, this notion commits the fundamental error of equating “money” and “wealth.” If everyone suddenly finds that free handouts have swelled their bank accounts, how long will it be before prices follow? (And since even helicopter money originates at the central bank, you can be sure that the financial sector will somehow get its hands on it first anyway!)
Number Six: the final point concerns the corrosive effect of the deliberate and utterly misguided suppression of interest rates which, if they were allowed to find their own market level, would represent the time-value of money, or what the private sector is prepared to pay for liquidity — either for spending now or saving for future spending.
Number Two: the above question overlooks the fact that the measures used in this process are inherently unreliable. The decline in purchasing power is most evident when objectively measured by reference to an essential commodity such as oil — rather than against the Consumer Price Index (CPI). The CPI purports to reflect the prices of ingredients selected by government statisticians in what they consider to be a typical, but notional, basket of “consumer goods and services.” This basket, whose contents are varied periodically, results in an index that cannot be trusted as an objective barometer. It supports the wizardry of non-independent Treasury statisticians, and relates to goods that scarcely feature in your shopping basket or mine.
Blowing Bubbles
Number Three: newly created fiat money must go somewhere — and so it goes into the grasp of its first receivers, the banks, the financial institutions, government institutions, and urban moneyed classes who least need it — widening the gap between rich and poor — and thereby building asset bubbles in property, luxury cars, yachts and the myriad baubles that only the very rich can afford to acquire. So never say that “there is no price inflation” — it’s just that those asset prices don’t figure in the official CPI stats.
Number Four: The European Central Bank (ECB) is no slouch when it comes to money creation out of thin air, and banks within the euro zone have therefore come to rely on it for survival. The solvency of Southern EU countries is dependent on the promise of limitless — thanks to Mario “Whatever it takes” Draghi — fiat money bailouts from the ECB. But, until the next bailout arrives, governments of Europe will do their coercive best to prop up their insolvent banks by any means, fair or foul. In Italy, for example, the government has now “invited” the country’s pension funds to invest 500 million euros in a bank fund called “Atlante,” which has been formally set up as a buyer of last resort to help Italian lenders (whose bad debts equate to a fifth of GDP) reduce their toxic burden. Having run out of other people’s money the Italian government is now trying to raid the nation’s pension funds.
Number Five: In the same vein, you have no doubt heard reference to “helicopter money.” This is a variant of QE favored by certain politicians who talk blithely about the need for “QE for the people.” The idea is to by-pass the treasury mandarins by dropping newly printed money directly to the people via government spending, so that they (rather than the already-rich classes) can benefit from the bonanza and aid the economy by spending their new-found wealth. Again, this notion commits the fundamental error of equating “money” and “wealth.” If everyone suddenly finds that free handouts have swelled their bank accounts, how long will it be before prices follow? (And since even helicopter money originates at the central bank, you can be sure that the financial sector will somehow get its hands on it first anyway!)
Number Six: the final point concerns the corrosive effect of the deliberate and utterly misguided suppression of interest rates which, if they were allowed to find their own market level, would represent the time-value of money, or what the private sector is prepared to pay for liquidity — either for spending now or saving for future spending.
Bruddah IZ
DA
I've noticed that you haven't noticed that he's noticed. Neither have comprehended but, you both notice.
Bruddah IZ
DA
You guys are too easy.
Your college textbook mumbo jumbo might matter if you were in college. Here in the real world, just look at the wealth people and companies have and ask yourself if the money is real that they got from QE, or hard work, or wherever. It’s real, pal. If you’re worried that Trump will send us into a spiral, that could be a legitimate concern.
Bruddah IZ
DA
LMAO! College does a poor job of teaching what inflation really is. Hence your digression here:
"Here in the real world, just look at the wealth people and companies have and ask yourself if the money is real that they got from QE, or hard work, or wherever."
The above is one of my favorite clueless rants from you. You have no idea what you're talking about. Get some help. I did and do. Espola says I'm brilliant when I do.
Sheriff Joe
DA
It felt like 2016 all over again
MARCH 8, 2018
Texas never lets you down.
https://www.americanthinker.com/blog/2018/03/it_felt_like_2016_all_over_again.html
MARCH 8, 2018
Texas never lets you down.
https://www.americanthinker.com/blog/2018/03/it_felt_like_2016_all_over_again.html
Sheriff Joe
DA
OBVI
Sheriff Joe
DA
Wells Fargo Lost its Soul When It Quit the Iditarod
JEFF GOODSON
You may not have heard of the Alaskan Iditarod, but it is as iconically American as the '57 Chevy and Route 66. Wells Fargo blew it.
https://www.americanthinker.com/art..._lost_its_soul_when_it_quit_the_iditarod.html
JEFF GOODSON
You may not have heard of the Alaskan Iditarod, but it is as iconically American as the '57 Chevy and Route 66. Wells Fargo blew it.
https://www.americanthinker.com/art..._lost_its_soul_when_it_quit_the_iditarod.html
Sheriff Joe
DA
Obamacare's latest 21,904 dead bodies
MARCH 8, 2018
A new report out shows that more than 20,000 Americans have died waiting for care as a result of Obamacare's Medicaid expansion.
https://www.americanthinker.com/blog/2018/03/obamacares_latest_21904_dead_bodies.html
MARCH 8, 2018
A new report out shows that more than 20,000 Americans have died waiting for care as a result of Obamacare's Medicaid expansion.
https://www.americanthinker.com/blog/2018/03/obamacares_latest_21904_dead_bodies.html
Hüsker Dü
DA
Hence the moniker, "Dizzy" he's been spinning on a loop for years now.
Working hard to remove all doubt....
Go buy some real money with your QE money, idiot. Then read about the Fed and the trilateral commission. I will be at the office making QE money to take a vacation this summer. Can I pay my VISA bill with QE money?
Sheriff Joe
DA
#whoiztheidiot?